I have the same problem. I just bought a used X41 on ebay with no hard drive. I'm trying to load WinXP Pro using a USB CD drive and a USB HD. I can't get past the first restart before I get the BSD. Do I need factory start up disks?

I get a code 0000007B when the Windows XP Pro starts the first time during installation; that's a drive controller error but I have no idea hoe to get past that point....should load a special driver during installation like you do when you have a raid set up?...

I have successfully loaded Ubunu 11 (I think it's 11?) and I'm learning to use it. It's very intuitive. Inserting the HD into the HD slot would be wonderful. I had thought about that but just assumed the voltage would be wrong for a 2.5" HD. I think the ide in my IBM X41 is 3v.